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HomeMy WebLinkAbout2013-05-28 Committee of the Whole MinutesTukwila City Council Committee of the Whole Meeting City Hall Council Chambers May 28, 2013 — 7:00 P.M. MINUTES COMMITTEE OF THE WHOLE MEETING EXECUTIVE SESSION The Executive Session scheduled to start at 6:15 p.m. to discuss Potential Litigation — pursuant to RCW 42.30.110(1)(i) —was cancelled. CALL TO ORDER/PLEDGE OF ALLEGIANCE Council President Hougardy called the Tukwila City Council meeting to order at 7:03 p.m. and led the audience in the Pledge of Allegiance. OFFICIALS Present were Kathy Hougardy, Council President; Councilmembers Joe Duffie, Dennis Robertson, Allan Ekberg, Verna Seal, De'Sean Quinn, Kate Kruller. CITY OFFICIALS Jim Haggerton, Mayor; David Cline, City Administrator; Jack Pace, Community Development Director; Bob Giberson, Public Works Director; Peggy McCarthy, Finance Director; Stephanie Brown, Human Resources Director; Chris Flores, Acting Fire Chief; Mary Miotke, Information Technology Director; Bruce Linton, Assistant Police Chief; Vicky Carlsen, Deputy Finance Director; Bob Benedicto, Building Official; Jon Harrison, Police Patrol Commander; Marty Grisham, Emergency Manager; Kim Gilman, Human Resources Analyst; Kimberly Matej, Government Relations; Laurel Humphrey, Council Analyst; Barbara Saxton, Administrative Support Coordinator. Ms. Hougardy announced that a report on the state of bridges in the City has been prepared for Council and suggested it be added to the agenda as item e under "Special Issues" instead of being presented under Staff Reports. Consensus existed to add item e., State of Bridges, to the agenda. SPECIAL PRESENTATIONS a. 2011 Certificate of Achievement for Excellence in Financial Reporting: Comprehensive Annual Financial Report (CAFR). Peggy McCarthy, Finance Director. Mayor Haggerton noted the Government Finance Officers Association (GFOA) has acknowledged that the City's 2011 CAFR qualified for a certificate of achievement for excellence in financial reporting. The GFOA notes this is the highest form of recognition in governmental accounting and finance reporting, and represents a significant accomplishment by government and its management. Mayor Haggerton presented the award to Peggy McCarthy, Finance Director. Ms. McCarthy introduced staff members from the Finance Department who were present this evening: Joanna Fortenberry, Fiscal Specialist Craig Zellerhoff, Fiscal Coordinator Lily Jue, Fiscal Coordinator Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator Penny Hansen, Fiscal Support Technician Richard Takechi, Fiscal Coordinator Vicky Carlsen, Deputy Finance Director Tukwila City Council Committee of the Whole Minutes May 28, 2013 Page 2 of 9 Ms. McCarthy also acknowledged the other members of the department, and explained the staff processes thousands of transactions that flow through the department and ensures they are coded correctly and classified properly, all of which results in the publication known as the CAFR. She displayed a board listing the Finance Department's accomplishments during 2012, which included: • Integrated accounts receivable system with cashiering • Streamlined RGRL and business licenses • Processed payroll remotely (during a snowstorm) • Created a financial structure for the Metropolitan Park District (MPD) • Created the budget in Excel and then uploaded into Eden, which eliminated the need to key in information for over 1,600 active accounts • Obtained a new collection agency • 27,000 water bills issued, 10,000 storm drain bills, 2,500 late notices, 15,000 invoices Ms. McCarthy noted this is the 24th year in a row the Finance Department has received the GFOA's CAFR award. She expressed pride and appreciation to the Finance staff, and presented the award to Jennifer Ferrer -Santa Ines, who coordinates the CAFR, prepares the statements, and works with the auditors. Ms. Ferrer noted the CAFR is a department effort and expressed appreciation for the support the Finance Department receives from other departments in the City. The Councilmembers expressed appreciation for the strong foundation provided by the Finance Department staff. b. 2012 Financial Report. Peggy McCarthy, Finance Director. Ms. McCarthy utilized a PowerPoint presentation to give an overview of the 2012 financial results. She explained that Vicky Carlsen, Deputy Finance Director, prepared the information summarized in the agenda packet, which contains more detailed information than the PowerPoint slides. City -Wide Fund Balances, December 31, 2.012 Ms. McCarthy explained that fund balances are an indication of liquidity and it is important to ensure the City's fund balances are where they should be. The graph compared 2011 actuals, 2012 actuals and amounts budgeted in 2012 for the City's various funds: - General Fund - Arterial Street Fund - Enterprise Funds - Internal Service Funds - Other Governmental Funds The General Fund balance was $3 million better than budgeted for several reasons, including that transfers out were underspent, largely as a result of the Transit Center project (scheduled to be bid in November) being delayed due to right -of -way negotiations. In addition, although revenues were lower than expected, expenditures were even lower. Although $10 million was budgeted for the Arterial Street Fund balance, the balance is almost zero. The fund was drawn down over the year to pay for two major arterial street projects, and $9.2 million of bond funding for the Local Improvement District (LID) that was budgeted for 2012 did not happen. The budget for Enterprise Funds was quite low. A conservative approach was taken, and some of the planned capital projects were not undertaken, including the water main replacement at Andover Park West and Strander Boulevard. 2012 Actual General Fund Revenues General Fund revenues totaled $51 million for the year, which is at 95% of budget. Sales and use tax continue to be the City's largest stream of revenue, followed by property tax. The "Other Taxes" category includes gambling tax, admission tax, RGRL fees and inter -fund utility tax. The "Intergovernmental" Tukwila City Council Committee of the Whole Minutes May 28, 2013 Page 3 of 9 category includes Seattle City Light franchise fee, sales tax mitigation revenue and other state entitlements, and grants. 2012 Actual General Fund Expenditures The total General Fund expenditures for the year were $50.9 million for the year (92% of budget). Salaries compose the City's largest expenditure at 50% of the budget. Departmental Expenditures — Budget to Actual The percentage expended for all departments was either under or met budget. Public safety (Police and Fire) comprises a large part of the City's expenditures. Enterprise Funds There was a positive variance (revenues exceeded expenditures) in every Enterprise Fund. Water Fund expenditures were down as the Andover Park West/Strander Boulevard water main project was not undertaken in 2012. Sewer Fund revenues increased 19% over budget. Surface Water expenditures were under budget due to postponement of work on storm lift station #15 to 2013. Although golf course revenues did not meet budget, expenditures were under budget, resulting in a positive variance. The biggest reason for the variance in the Golf Course Fund is that the debt service on the clubhouse expenditures were moved out to a debt service fund, but the budget remained in that fund, resulting in a large variance. Staff also undertook deliberate cost containment measures. Ms. McCarthy stated that 2013 1st quarter results will be presented to Council at a meeting in the near future. Councilmember Robertson expressed appreciation for the clear depiction of information in the charts provided in the PowerPoint presentation, and would like that type of information to be included as part of the agenda packet in the future. As Chair of the Finance and Safety Committee, he would like the committee to review the revenue estimates for the utility taxes and charges for services once first quarter data for 2013 is available. He would also like the committee to review the PERS and LEOFF cost estimates. Councilmember Ekberg referenced the 2012 "actual" City -wide fund balances, and asked for clarification that the outgoing costs expended for the Klickitat Project will be reimbursed by the LID. Ms. McCarthy confirmed all costs will be reimbursed. She also explained that the rule of thumb for the Financial Planning Model in the past was to maintain a $25 million total balance for the combined General Fund, Arterial Street Fund and "Other Governmental Funds." That amount dropped by $7 million from 2011 to 2012 (down to $18 million); however, the $8.5 million the City is due from the LID will return that balance to goal. Councilmember Kruller asked if there were areas where the City could do tasks more efficiently to reduce expenditures and generate additional revenue, and about the status of the City's debt service. Ms. McCarthy explained some year -end variances are larger, as the budget amounts are not being adjusted more frequently to reflect new estimates when there are significant changes. The City has not issued any new debt with the exception of the debt for the Metropolitan Park District (MPD), which the MPD is paying the debt service on. She also noted that sequestration does affect the City slightly. The subsidy cutback does affect the SCORE jail bonds; SCORE is funding the shortfall through reserves. Councilmember Quinn stated the budget overview exemplifies the initial process the Mayor undertook when the economic climate changed, using the 3- legged stool approach to address salaries, new revenue, and reduced expenditures. He feels it is important to continue the conversation using this approach. Councilmember Robertson noted City Administration has done a good job of holding costs down. Tukwila City Council Committee of the Whole Minutes May 28, 2013 Page 4 of 9 Mayor Haggerton commended the efforts of Ms. McCarthy, Ms. Carlsen and the City's legal team to address the issue of getting all back taxes caught up in 2012, including gambling and admission taxes. He explained that businesses were told the City must be fair and equal in collecting taxpayer dollars. CITIZEN COMMENTS There were no citizen comments. SPECIAL ISSUES a. An ordinance adopting the 2012 State Building Code and the International Energy Conservation Code, 2012 Edition. Councilmember Ekberg indicated this item was discussed at the Community Affairs and Parks Committee meeting on May 13, 2013. The committee members were unanimous in recommending approval. Bob Benedicto, Building Official, explained the ordinance would adopt the 2012 State Building Code and 2012 Washington State Energy Code. The Code Council meets every 3 years to adopt new versions by national consensus. Once those codes are published, the Washington State Building Code Council adds amendments specific to Washington State. The proposed ordinance includes the Energy Code, which is usually adopted under a separate section of the Tukwila Municipal Code. The International Energy Conservation Code adopted this year is very different from the code this state has used in the past, and is a product of Governor Gregoire's initiative to bring a 70% reduction in the net annual energy consumption of newly- constructed residential and non - residential buildings by 2031. The benchmark is the 2006 Washington State Energy Code. The new code will present challenges for the construction and development community including Radon mitigation in all houses throughout the state and testing for air infiltration in all buildings. Third -party consultants may be needed to accomplish some of the inspections and testing required by this code. The second part of the proposal was to create a fee adjustment methodology. The Consumer Price Index (CPI) has been used in the past to determine costs for permit and inspection fees. A 5% increase in all permit fees was proposed in 2008, which was the first increase in permit fees in many years. Using a new methodology for reviewing fees on a biennial basis to decide whether or not to raise fees will allow for incremental increases rather than periodic large increases of 5 to 10 percent. The City strives to maintain at least a 50% recovery rate, meaning 50% of the department's cost versus revenue is taken in. Mr. Benedicto provided examples of how the proposed 2.7% increase in permit fees would affect permit fee costs for real -life projects. He also noted the City does try to maintain fees as low as possible for residential construction. Councilmember Quinn asked if the costs and impact of these unfunded mandates (relating to the new energy code) will be tracked. Mr. Benedicto confirmed the City will track the new costs that will be imposed on users. The information may be used in the future to determine whether the City could perform some of the testing /inspection functions at a lower cost than private entities. He noted that specialized equipment and staff training would be required to take on the new tasks. Councilmember Robertson suggested a future presentation to the Council on what is included and should be expected as a result of adoption of the new International Energy Code. Mr. Benedicto explained a major change will be the requirement for testing and inspections rather than just approval based on plans submitted. Council discussion included: recognition that although the cost of permitting may seem high, the City is absorbing 50% of the cost of the program; there will be additional cost impacts as a result of adoption of the International Energy Code; there is support for an incremental approach to increases in permit fees; and appreciation for the conscientiousness given to the detailed work required. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. Tukwila City Council Committee of the Whole Minutes May 28, 2013 Page 5 of 9 b. An ordinance amending Ordinance No. 2306, as codified at Tukwila Municipal Code Section 7.20.020, "Dogs at Large— Requirement of a Leash or Chain." Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee meeting on May 21, 2013. The committee members were unanimous in recommending approval. Jon Harrison, Police Patrol Commander, explained that Ordinance No. 2306 did not indicate which department or entity was authorized to enforce the City's leash law. The proposed ordinance adds additional language to indicate that any law enforcement officer shall have the authority to issue an infraction. This will allow law enforcement to intervene if animal control officers are not available. Council discussion included the need for enforcement, as well as signs and education to inform the public about the City's leash law; and recognition that the intent is not to divert Police focus from other serious issues but to allow for enforcement of the ordinance when needed. Commander Harrison stated the Police Department is working with the Parks Department to delineate the rules at City parks. Several Councilmembers expressed interest in having a dog park in Tukwila, and noted the Parks & Recreation Department's current on -line survey regarding the Parks, Recreation and Open Space (PROS) Plan allows an opportunity to express opinions on this issue. Councilmember Robertson explained that a related issue was discussed during the Finance and Safety Committee's review of this ordinance. The current ordinance states that a dog can be off leash on its owner's property or in a vehicle. The Finance and Safety Committee asked that Police, legal and any other involved departments bring the topic back in September with more specific language regarding boundaries (i.e. neighboring properties), leash lengths, etc. COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. c. A consultant agreement with Rice Fergus Miller for the City Facilities Needs Assessment and Feasibility Study. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee meeting on May 21, 2013. The committee members were unanimous in recommending approval. Bob Giberson, Public Works Director, explained the proposed consultant agreement is for a City facilities needs and assessment feasibility study. The department advertised a Request for Proposals and conducted interviews with two consultants. Rice Fergus Miller was selected, partially based on submission of a better stakeholder and outreach plan. He referenced page 71 of the agenda packet, which is the proposed project work plan from Rice Fergus Miller. Each of four phases takes two months, which is a very aggressive schedule. The four phases are: - visioning and information gathering - development of need and prioritization of findings - feasibility study - risk assessment All four phases will include outreach, a steering committee and a work session with Council. The proposed team organization chart is on page 72 of the agenda packet, and includes an experienced team of subconsultants. The contract amount of $349,135 is well below the budgeted amount of $500,000. Councilmember Seal noted that since each step of the process will include a briefing at a Council meeting, Council representation on the steering committee is not imperative. The Finance and Safety Committee recommended consideration be given to Board and Commission members. Councilmember Ekberg noted that the City's Strategic Plan process included a telephone interview with Councilmembers, which may be a good step to take for this study too. Tukwila City Council Committee of the Whole Minutes May 28, 2013 Page 6 of 9 COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING. d. A resolution regarding compensation policies. Councilmember Robertson indicated this item was discussed at the Finance and Safety Committee meeting on May 21, 2013. The committee members were unanimous in recommending approval. He explained that this is a policy that needs to be reviewed and updated periodically. Some of the items included are steps the City is already starting to do, including Council involvement in contract negotiations. The policy adds more process and statements about what the Council's role is and timing for when information should be brought to the Council. This is a continuation of work that was started on this issue in prior years. Stephanie Brown, Human Resources Director, expressed appreciation to the Finance and Safety Committee, City Administration and the City Attorney for their participation in this discussion. Council discussion included the need to be clear about Council's role and expectations; Council's desire to provide high level policy direction; and the importance of being consistent, transparent and upfront about policy perspectives. Councilmember Robertson explained the reason for deleting the word "salaries" from subparagraph 4 on page 3 of the resolution was that while the Finance and Safety Committee felt benefits should be comparable among all groups, comparable salaries between represented and non - represented employees cannot be guaranteed. Kim Gilman, Human Resources Analyst, explained the current verbiage in subparagraph 5 on page 3 of the resolution can be interpreted such that the second sentence contradicts the first sentence. She recommended the second sentence be revised to read as follows: "An example of salary compression would be when a non - represented supervisor earns less, or is projected to earn less than those that he /she supervises due to contracted wage increases." COUNCIL CONSENSUS EXISTED TO FORWARD THIS ITEM TO THE NEXT REGULAR MEETING WITH THE AMENDED WORDING. e. State of Bridges (added to agenda by consensus, per page 1). Bob Giberson, Public Works Director, utilized a PowerPoint presentation to provide an update on the condition of bridges in Tukwila. There are 21 bridges owned and maintained by the City of Tukwila. All bridges are inspected every 2 years. Each bridge is assigned a sufficiency rating number, which is derived from a complicated structural engineering formula that addresses adequacy, safety, structural engineering, serviceability, functional obsolescence, and the essential for public use. A rating of 100 means the bridge is new. A rating of 0 means the bridge is not suitable for carrying traffic. City of Tukwila Bridges (north to south) Boeing Access Road —over Airport Way: 51.37. Good condition Boeing Access Road —over BNSF /UPRR: 24.45. Has qualified for federal rehabilitation funding. Beacon Avenue —over Ryan Way: 64.93. Contains two water lines owned by Seattle Public Utilities. East Marginal Way —over Duwamish River: 70.30. Good condition. Tukwila International Boulevard Bridge over Duwamish River: 86.86. Fairly new. 42nd Avenue S. —over Duwamish River: 53.91. This is a truss bridge (near the Tukwila Community Center) that is similar to the Skagit Bridge. It is fracture - critical; however, the intersection controls on either side of the bridge reduce the likelihood of a truck going over 20 miles per hour. Tukwila City Council Committee of the Whole Minutes May 28, 2013 Page 7 of 9 Macadam Road S. —over S. 133rd: 82.64. This bridge was replaced with federal bridge replacement funds in the 1990s (after being hit by a backhoe). 56th Avenue S. —over Duwamish River: 66.88. Good condition (1980s). Foster Golf Links: N/A (pedestrian /bicycle bridge) S. 143rd /Fort Dent: N/A (pedestrian /utilities) Interurban Trail Bridge: N/A (pedestrian /bicycle bridge) Grady Way (half of the bridge is in Tukwila): 71.95. Bridge inspection is traded off every 2 years with the City of Renton. Southcenter Blvd. —over Green River: 95.41. One of the highest rated. 51st Avenue S. —over Southcenter Boulevard: 77.9. Great condition (1990s). Strander Blvd. —over Green River: 83.94. S. 180th Street —over Green River: 77.15. In good shape. Interurban Trail —over S. 180th Street: N/A (built along with 180th Street grade separation). Great shape. S. 200th Street —over S. 180th Street: 85. Tukwila and Kent each own half. Great shape. Additional bridge not listed on PowerPoint: • Klickitat —over Southcenter Parkway (new): Great shape. In addition, there are approximately 15 bridges in Tukwila owned and maintained by WSDOT. Five more bridges are owned by King County and others, all of which are in great condition. Councilmember Kruller noted that the Skagit Bridge was rated a C -, and asked how that compared with the above ratings. Mr. Giberson explained the C- is a grade given by the American Society of Civil Engineers. Councilmember Ekberg asked about several other bridges not noted on the previous information, including: • 144th over 1 -5, which is a WSDOT bridge • Union Pacific Railway -owned bridge over the river into the Urban Center Chris Flores, Acting Fire Chief and Acting Emergency Operations Manager, and Marty Grisham, Emergency Manager, continued the presentation, providing information on City resources the Fire Department can mobilize in response to an emergency such as the Skagit Bridge collapse. Tukwila is in Fire Zone 3, and can coordinate with the County and offer resources during an event such as the Skagit Bridge collapse. The Zone Coordinator (from SeaTac) tallies resources from various cities. When the Skagit Bridge collapsed, fire boat operators were contacted and boats (including Tukwila's) were readied for deployment. In a case like this where people are in the water, the search area can expand to 10 miles in 2 hours. Regional partners were willing to assist if needed. City Resources • Two boats acquired through planning during the Howard Hanson dam event. The boats have side access for retrieving victims, a jet propulsion motor (no prop), and are well- equipped for night ops. • Two mass casualty units, each capable of serving 100 patients. • Decontamination unit. Chief Flores noted the boats have been very valuable in incidents since being acquired. The City has trained 14 Fire personnel and 12 Police personnel on the Columbia River in simulated flood situations. REPORTS a. Mayor Mayor Haggerton noted that Police and Fire personnel have offered to take interested Councilmembers on a tour of the river and levees. He referenced the earlier bridge sufficiency ratings and noted that the Skagit Bridge had a rating of 57. Tukwila City Council Committee of the Whole Minutes May 28, 2013 Page 8 of 9 The Mayor attended the City trainings on May 20, 21 and 22, 2013, which involved a "high- performing organizations workshop" for 36 employees. He explained the City's audit entrance conference has been completed, and noted the auditors were careful about predicting expectations of the new State Auditor. He attended the Memorial Day event at the Museum of Flight on May 27, 2013. The Mayor noted that he will be meeting with a Foster High School student from Bosnia tomorrow who was the recipient of an Association of Washington Cities scholarship. The official scholarship presentation will be made during Senior Day at the high school (June 12). b. City Council Councilmember Duffle attended the Memorial Day event at the Museum of Flight. He will be hosting an extra Council Chat this weekend. Councilmember Ekberg reported he recently viewed shoreline management activities on the river by kayak. Councilmember Seal attended the community meeting for the PROS plan on May 22, 2013, which included brainstorming ideas with BERK Consulting. Another workshop is being held for community leaders. On May 23, 2013, she adjudicated student -led plays for Foster High School's advanced drama class. Councilmember Kruller attended the May 21, 2013 SCATBd (South County Area Transportation Board) meeting, during which they voted in support of Substitute House Bill 1954 (transportation package). On May 25, 2013, she participated in the Tukwila International Boulevard clean -up effort. She noted that the volunteers have seen a positive difference along the corridor since the City contracted with Waste Management. Ms. Kruller attended the Memorial Day event at the Museum of Flight on May 27, 2013. She also attended a public program on Linebacker II operations, which occurred during the 11 -day war in 1972. She attended a community meeting at Foster High School this evening under the auspices of the Tukwila School District's new Superintendent. Ms. Kruller noted that the Tukwila Turtles swim team will be participating in the Washington State Special Olympics event at the King County Aquatics Center in Federal Way on Saturday, June 1. Council President Hougardy attended the Memorial Day event at the Museum of Flight on May 27, 2013. She noted that all Councilmembers are invited to Foster High School's commencement ceremony on June 14, 2013. c. Staff David Cline, City Administrator, provided information on the 3 -day training on high - performing organizations, which works to engage all employees to use their talents. He noted that the training will be repeated with additional City staff in September. d. City Attorney The City Attorney's presence is not required at Committee of the Whole meetings. e. Intergovernmental Council President Hougardy welcomed Laurel Humphrey, the City's new Council Analyst. MISCELLANEOUS Councilmember Quinn stated the EPA is accepting public comments regarding the Duwamish River clean -up, including comment on the techniques being proposed and strategies for clean -up. The City of Tukwila will be responsible for the outcome, whichever method is chosen, and the implications of the final plan could range from $100 million to $300 million. The deadline for comments is June 13, 2013. He noted the focus of the clean -up may be on the South Park community, but Tukwila residents will also be impacted. Source point control of pollutants is a big issue, as levels of pollution after clean -up efforts have often returned to previous levels. Tukwila City Council Committee of the Whole Minutes May 28, 2013 Page 9 of 9 ADJOURNMENT 9:46 p.m. COUNCIL PRESIDENT HOUGARDY DECLARED THE COMMITTEE OF THE WHOLE MEETING ADJOURNED TO CONVENE A SPECIAL MEETING. Kathy Houdy, our cl Preside Barbara Saxton, Administrative Support Coordinator APPROVED AND SIGNED BY THE COUNCIL PRESIDENT: 6/12/13 AVAILABLE ON CITY WEBSITE: 6/12/13